Assisted living manager pleads guilty to a Medicare fraud and kickback scheme

In the latest fallout from a massive Medicare fraud kickback scheme in Florida, an assisted living manager has admitted he referred residents in exchange for money.

Ramchand Ramrup, the manager and operator of Boynton Beach Assisted Living Facility in Ft. Lauderdale and owner of a purported mental health center called Florida Behavioral Specialists Inc., pleaded guilty to one count of conspiracy to commit healthcare fraud. Ramrup admitted he referred his residents with Medicare benefits to American Therapeutic Corporation. In exchange, ATC paid Ramrup $40 per Medicare beneficiary per day for each day of alleged therapy they received. According to his plea agreement, Ramrup’s role in the scheme amounts to $873,200 in fraudulent billing to Medicare.

Ramrup faces up to 10 years in prison and a fine of $250,000. He will be sentenced in February.

The Department of Justice has indicted 34 people involved in ATC’s $205 million Medicare fraud scheme. In all, ATC garnered $87 million in Medicare payments after submitting $205 million in false claims. ATC owner Lawrence Duran was sentenced to 50 years in prison in October for his role.